The first
question that arises is What is
volatility ? It is the regular change in the value of a particular asset
which can be either in favor or against. Its one of the major factor which
people are afraid of while making investment and a common tendency states that volatility
will lead to fall or have negative impact on the investment. Case in the point
is that such fluctuation take your investment up as well as down and the ones
which never ever falls will never ever fly. Three major solutions to avoid or
reduce the risk of volatility are as follows:
Long
Duration Investments: This would give that extra cushion of
time to your investment thereby reducing the impacts of small fluctuations.
SIP:
Investments are made in different time cycles which end up with the benefit of
cost averaging.
Diversification:
The erratic moves in the equity markets, especially in the small caps are
ignored when they are clubbed with other mid cap and large cap stocks to avoid.
ICICI
Prudential Value Discovery Fund: Daily Chart
ICICI Prudential Value discovery fund
is an open ended diversified equity fund, which aims at stock which are
available at a discount to their intrinsic value through a process of
‘discovery’ this process is called as Fundamental research. This process
involves identifying companies that are well
managed, fundamentally strong and are available at bargained price.
Top Holdings:
|
Company
|
PE
|
%
Assets
|
|
Wipro
|
14.50
|
8.16
|
|
Larsen
and Toubro
|
26.64
|
8.10
|
|
HDFC
Bank
|
26.19
|
7.91
|
|
Sun
Pharma
|
22.42
|
7.50
|
|
ICICI
Bank
|
19.12
|
5.42
|
Sector
Allocation:
|
Sector
|
%
|
|
Banking/Finance
|
19.10
|
|
I.T
|
17.25
|
|
Engineering
|
11.00
|
|
Pharmaceuticals
|
9.88
|
|
Automotive
|
9.77
|
Returns as on 29 March, 2017
|
Performance
|
Fund
|
|
1 Year
|
22.26
|
|
3 Year
|
23.90
|
|
5 Year
|
22.50
|
Risk
Profile: The
risk is moderate in this fund as the investment is diversified among various
assets. Average returns can be expected from this fund as it is outperforming
at current levels. Investors looking forward for good returns with moderate
risk should consider this fund for investments in staggered fashion or through
SIP route.
In
a nutshell,
corrective action in this fund looks to be more of time rather than price so
investments in staggered fashion is advisable and SIP should turn out to be the
best way as it will provide excellent cost averaging opportunities.
Basically, you need a Financial Advisor to cope up and understand the concepts of Investing in a correct scheme at correct time. Have a look at the benefits of the same -
